Governor Cuomo Asks New York State Comptroller Tom Dinapoli to Revisit Revenue Projections in Light of Market Impact of Novel Coronavirus
Governor Andrew M. Cuomo today issued a letter to New York State Comptroller Tom DiNapoli asking him to revisit the state's revenue projections in light of the market impact of the novel coronavirus.
The full text of the letter is available below:
Dear Comptroller DiNapoli,
Thank you for all the work you've done in reviewing our state's revenue estimates as part of the state's budget preparation.
As you know we recently completed the consensus revenue forecast in which your office participated as did independent experts who opined on the uncertainty of the economy going forward and since then the outlook has deteriorated. We are now basing our budget on revenue projections based on the consensus economic forecast for the current and upcoming fiscal year. The revenue projections are the underlying premise of the state's entire budget. If the revenue forecast is wrong, then everything that follows is incorrect.
As you know the world has changed in just the past few days and weeks. The world financial market volatility will no doubt impact our economic growth forecast for the next State Fiscal year and revenue from the financial sector. The COVID 19 epidemic could impact virtually every sector of society with school closures, travel disruptions, empty restaurants and hotels, and canceled business meetings.
We are in the final stages of budget negotiations and I would ask you to perform a risk analysis of our revenue projections in light of the recent developments. Our budget relies on two projections: current year and next year revenue projections and underlying economic growth forecasts. I can see how the current State Fiscal year's projections may be largely secure but I would like the benefit of your thoughts. I see possible major impacts on next year's forecast and would like your opinion on next year's revenue projections and what we should do, if anything, in this year's budget to prepare for next year.
I understand no one has a crystal ball but I also understand revenue projections are a necessary and essential function and many national economic advisors are putting forth theories on the global market impact and making frantic revisions to near term economic forecasts. I would ask you to review them and opine for New York State. As time is short, I would appreciate your advice in 7 days. Thank you very much.
Governor Andrew M. Cuomo